Entrepreneurship and its Impact on Economy - Desklib

This report discusses the various aspects of entrepreneurship, including types of entrepreneurial ventures, entrepreneurship typologies, and the impact of SMEs on the economy. It also examines the scope, development, and growth of entrepreneurial ventures in both public and corporate sectors. Additionally, it highlights the traits, characteristics, and skills required for entrepreneurs to establish and develop their businesses.

Unit 9

INTRODUCTION
Entrepreneurship is undertaken as introducing or performing new ventures. Additionally,
this is the formative process in which individuals takes risks in order to develop and operate
business in efficient way while ensuring larger profitability and growth. Moreover, it is being
regarded by them for providing societies as well as countries innovative commodities which can
maximise its standards of living. In addition to this, person who develop those ventures are
called as entrepreneurs (Alsafadi and et. al., 2020). Also, it is the competencies to manage
business through considering several forms of risk in order to enhance large profit. The topics
which are going to be discussed in this report are kinds of entrepreneurial ventures and its
relation with entrepreneurship typology, similarities and difference among entrepreneurial
ventures. Moreover, interpretations of statistics in context of micro and small venture that have
affects on economy are also explained. Apart from this, the entrepreneurship impacts upon
economy, entrepreneurial mind set as well as atmosphere that hinder or foster entrepreneurship
are also described in this report.
TASK 1
P1:
Entrepreneurship is regarded as the method of forming new ventures at marketplace with
aim of maximising sales as well as profitability. Moreover, it is also called business.
Additionally, individuals who develop those businesses are called entrepreneurs. In addition to
this, it is undertaken as the capabilities for developing or managing new business through
considering several forms of risk in order to formulate larger profits (Doern, Williams and
Vorley, 2019). Herein, entrepreneurs perform those ventures and facilitates offering towards
their customers. In this regards, there are essentially four kinds of entrepreneurial ventures which
are explained below:
Small business entrepreneurship: Respective ventures are performed by individuals at their
own risks. Additionally, these involve plumbers, hairstylists and many more. Additionally, the
main aim of this is to obtain limited profits and perform to attain its essential expectation. In
addition to this, there are around 5.5 million small firms who are conducting its business into UK
(
UK Small Business Statistics, 2021).
1

Large company entrepreneurship: These are those entities who are conducting its operation
at huge level. Moreover, these have vast staffs which are rendering their fuller potential as well
as competencies to attain their enterprises goals. Additionally, these required more funds in order
to perform their activities in efficient way. Such as TESCO, Marks & Spencer.
Scalable start-ups entrepreneurship: These involve entities that have comparative greater
range of growth to other firm within marketplace (Hechavarria and et. al., 2019). In addition to
this, it conducts practices of business for facilitating creative as well as innovative offerings to
clients. Additionally, they have effectual mission and vision for changing the overall world or
attain the expectation of customers through facilitating them several forms of innovative
products. For example: Google, Microsoft and so on.
Social entrepreneurship: These kinds of business are developed for facilitating offerings
for societal welfare. In addition to this, the social business individuals are performing its business
practices for not gaining profitability but aim to achieve expectation of society. Additionally,
social ventures are performing its practices for enhancing the living standards of individuals.
Such as NHS, Oxfam and many more.
Entrepreneurship Typologies
Entrepreneurship Typologies are used for describing the various aspects that depends
upon survival, growth and so on. Thus, the typologies of entrepreneurship depend upon
entrepreneurial venture are discussed below:
Growth firms: These are conducting their business practices for gaining huge profitability
and growth. It includes ventures that have higher degree of growth rate as compared to other
entities within similar sector. Additionally, these entities are focused about facilitating items that
become competent to attain clients’ expectations in order to develop marketplace and maximise
clients’ base for satisfying targeted customer desires.
Lifestyle firms: These businesses is conducting their activities as well as facilitating
various opportunities of employment with intent of increasing revenues. In addition to this, these
firms are focused towards enhancing individual’s or social lifestyle (Ismatullayevich and
Bulturbayevich, 2021). Additionally, it is related with societal entrepreneurship as both perform
its operations in order to maximise the living standards of society.
For instance, it has been determined that there are several entities which can be labelled
within particular component that depends on its goals. Moreover, entrepreneurial ventures and
2

typologies are essential into dividing numerous varieties of business and compare their intent of
performing its operations. In addition to this, the huge firms perform its activities for commercial
business enhances as well as obtaining effective profit. While smaller firms are effectively
focused towards its protection or sustainability into market areas. In addition to this, scalable
firms or societal ventures are performing their practices in order to boosts person or societal
lifestyle as well as desires (Kunaka and Moos, 2019).
P2:
The differences among small, large, scalable and social entrepreneurial ventures:
Basis Small size Large size Social Scalable
Meaning The smaller size
businesses are
performed at
smaller level.
Large businesses are
performed at huge
level that focused
upon location as it is
the fundamental
aspects.
Social ventures
conduct their
business for welfare
of society at
moderate level
(Canestrino,
Magliocca and
Pawełek, 2020).
Scalable ventures
are those business
that performed
their business at
scale level.
Objects Its aim is to
accomplish more
profitability as well
as attain
development
(Rosin, Stubner and
Pinkwart, 2020).
The key aim of
respective
entrepreneurial
venture is to render
business activities
expansion.
The main intent of
respective ventures is
to perform their
business for societal
growth and welfare.
Respective
ventures key aim
is to maximise
profitability by
expanding their
operating
functions.
Similarities:
 The key aim of all ventures is to obtain profit and survival within market area by
attaining societal needs.
3

 Whole entrepreneurial ventures have to consider capital from several investors in order to
expand their business at competitive marketplace.
 For accomplishing their business goals, all entrepreneurial venture focus on constant
innovation.
 All entrepreneurial ventures have to take capitals form several investors in order to
expand their business at competitive marketplace.
TASK 2
P3:
The business plays essential role within economical growth. Moreover, this contributes
towards development by forming required changes into technologies, amenities and others.
These bring prosperity and development into any economy (Leonidou and et. al., 2020).
Additionally, there are essential three forms of business which are described below:
 Small: Herein, there are about 1 to 19 staff who are working in organisation as well as
aids them in attainment of goals. Additionally, in it, the income is less than £5 million.
Moreover, the revenue generated by respective entity are lower as well as because of this
they contribute comparatively lesser (
UK Small Business Statistics, 2021).
 Medium: Herein, there are around 50 to 250 workers who are conducting within entity as
well as their revenues would be among 5- 22 million. Additionally, it contributes towards
economical growth as this generates quite higher incomes as compare to smaller one (
UK
Small Business Statistics, 2021).
 Large: These entities hire larger number of workers as well as less number would be
more than 250 in addition to this, they generated profit that is above $22 million. This
performs with huge amount as well as provides job opportunities to larger group of
person (
UK Small Business Statistics, 2021).
Impact of SMEs on economy
4

Illustration 1: Role of Start-ups and Small Businesses
(
Source: The Role of Startups and Small Businesses in Today’s Economy, 2018)

Local impact: Both micro and smaller business facilitates its goods to attain its
requirements. Moreover, these entities are developed into in such a way that they would
able to analyse the needs of person. Through it, business can decide their buying power
for rendering goods base upon its requirements. Therefore, these businesses likewise
facilitate job opening for person so that they can able to gain cash for improving their
desires associated with regular comforts and way of life which would aids within growth
of nearby economy.

Regional impact: SME’s provides job opportunities to regional people. Moreover, this
aids economy to obviate poverty into their economy by rendering job. Additionally, this
have effectual and vital affects upon economy as this assists them in maximising rate of
employment that would indirectly increase respective country’s individuals living
standards. Also, this contributes towards income generation for economy.

National impact: The small and medium enterprise have optimistic impacts upon country
as this aids economy in developing infrastructures, technologies and so on which
ultimately aids into growth of nations (Malgas and Zondi, 2020). Additionally, this
assists in enhancing living standards of people who are living there. Based upon the
5

survey, SME employees are more than 15.7 million in United Kingdom which represents
affirmative effects of SME’s.
Critically examine the scope, development and growth of entrepreneurial ventures both in public
and corporate sectors
According to Canestrino (2020), Within both corporate and public sector, their objectives,
vision and mission are distinct which impact the scope of those firms. In case those entity may
formulate goods which can able to accomplish the customer’s demands then, they may sustain
for longer duration through gaining profits. Also, various ventures required to concentrates upon
growth through obtaining investments as well as plans for developing its goods in respect with
present trends and demands. In addition to this, the growth of several entrepreneurial ventures
depends upon its quality of goods.
P4:
Social economy is formed through rich diversity of various entities and business like
association and others who share common characteristics and values. Moreover, it is essentially
developed to facilitate advantages to society effectively. Additionally, the small and start up
business assists the societal economic growth of country that develops various affirmative
opportunities at marketplace (Maphula and Diraditsile, 2019). Therefore, few effectiveness of
small as well as start up business towards societal economy growth are described below:
Economical development: The businesses which are small in nature or new facilitate huge
number of opportunities as this produces higher revenues. Moreover, this renders goods of
effectual quality as well as at affordable cost for becoming proficient enough to pay taxes to
government which is helpful into economical growth. Also, as government of several countries
may become competent to develop infrastructure and so on. Additionally, these taxes aids
economy to become stronger in respect of monetary and it develops motivations into other
entrepreneurs which results in initiating their own business in order to obtain much profit.
Facilitating jobs: The one of the most essential contribution of SMEs is that they involve
into procedures of facilitating number of job opportunities to domestic people through
facilitating them required jobs. Additionally, this has been determined that SME’s within UK are
facilitating employment opportunities to localised person. Moreover, this have been analysed
that micro and smaller scale business also recruit semi skilled labour and those people who are
having particular competencies. This effectually assists in enhancing country per capita income
6

which provides economic development as well as gross domestic production. Also, it has been
determined that SMEs also facilitates distinct range of training to its employees for making them
compatible within its job role (McKenzie, 2021). This enhances person’s skills as well as
understanding which maximises whole profit rate of firm with employment opportunities that
would help UK to evaluate essential enhancement into its economic performance.
TASK 3
P5:
The several traits, characteristics and skills are vital for entrepreneurs for establishing
business as well as enhance its development. In order to develop business, various procedures
needed to be consider by entrepreneur and those needs to be attained individually (Obschonka
and Audretsch, 2020). Therefore, traits, characteristics and skills of Tom mercer are discussed
below:
Entrepreneur Characteristics Traits Skills
Tom Mercer
Hard worker with
dedication:
This is known as
the vital
characteristics
which an
entrepreneurs
should have as it
assisted them in
conducting their
business
operations and
gain growth such
as Tom works at
late night in order
to produce
smoothies for
Expertise at
networking and
passionate:
As Tom Mercer
begins two new
sites within
Vauxall as well as
other into Canary
Wharf. Within
year 2008, he had
around nine stores.
Additionally he
formulates
relationship with
several entities
which leads him to
develop contracts
Managing skills:
After four months
of MOMA opens,
this had formed
his ventures and
there was only
some workers so
nights was also
performed by
their workers. In
addition to this, it
become much
renowned as well
as employs few
direct competent
consumers
towards MOMA.
7

having effectual
stocks to sell it
several areas as
ell as also
removed from
various place but
did not give up.
Virgin Atlantic
and so on.
Elizabeth
Gooch
Loyalty and
dedicated
towards
company:
This
characteristic is
having in
Elizabeth Gooch
as she work for
various years in
same company
either they are in
losses or profit
which shows
here loyalty
towards
respective
entity.
Moreover, after
the losses she
grew millions of
profitability that
is here
Elasticity: The
manager as well as
staff needs to acts
in response of
quickly to modify
the issues of
business or any
forms of situations
such as EG
solution utilised it
into secretarial
aspects.
Problem
management
skills: This is one
of the essential
skill for
entrepreneurs as it
helps them to
handle the
problems that
occurs during
work. In respect
of Elizabeth
Gooch, also
have this skill as
the problem
occurs and incur
losses.
Thereafter she
came tackle the
issues and gain
profitability into
upcoming years.
8

dedication
towards the
work which she
was performed.
Difference between entrepreneurs and business managers.
Entrepreneurs Business managerKey motivation The entrepreneurs’ main
motivation is
achievements.
While business
manager main
motivation is usually
comes from their power
as well as position.Decision making Entrepreneur’s decision
making is intuitive.
Business manager’s
decision making is
calculative.
P6.
Entrepreneurial Motivation Mindset and its importance
Entrepreneurial motivation is undertaken as a look for new ventures development and
passion for sustainability through that entity is directly related with encouragement of
entrepreneurs. In addition to this, the mind set of entrepreneurial is described as specific
perception where person came in reach of difficulties as well as errors. Therefore, both aspects
are vital for entrepreneurial business as this aid in confidence development and it also states that
one is much adaptable for obtaining the opportunities as well as not are afraid for taking any
forms of equipped along with relevant skills of entrepreneur. Hence, OCEAN Model can be
utilised in order to represents several traits of personality and encouragement. This incorporates
5 prospects which are discussed underneath:

Openness: This is essentially connected with thoughts, experiences and feelings.
Moreover, it highlights that willingness and innovations aids entrepreneurs to undertake
9

effectual as well as legitimate choices for their business. Additionally, this also helps
them in gaining new aspects as well as undertaking challenges in essential way.

Conscientiousness: It is connected with qualities such as adoptability, resolute and so on.
Additionally, this represents that business person has to be concentrated upon their intent
rather than incorporating within another inefficient practices in order to accomplish
objectives appropriately.

Extroversion: This highlights those entrepreneurs has to be confident, energetic, and
social and so on which impacts the workers and several person. In addition to this, with
aids of it, business person can likewise has effectual relations along with staff which
assists them in holding the staff.

Agreeableness: This represents those ventures that have been reliable and pleasant that
would aid them in managing with their staff and other person. In addition to this, through
it, they can become competent for keeping faith into their workers which prompts
effectual relations. Through this, entrepreneur can undertakes suggestions and thoughts
from staff in regards of venture’s development as well as performance.

Neuroticism: Respective traits of personality is connected with expectation, tension,
stress and so on in which business person performs in adverse way along with specific
circumstances. Additionally, the entrepreneurs ought for maintaining strategic distance
from those components in order to treat their workers equivalently. In addition to this,
through keeping away from this forms of elements, they can has effectual as well as
appropriate working atmosphere at entity.
Therefore, all above personality traits are useful entrepreneurs for becoming successfully.
Therefore, Tom Mercer and Elizabeth Gooch has extraversion and openness personality traits.
Such as in case he didn’t hold those traits so he may not stay late for generating 200 smoothies’
bottles. Also, he was encouraged to develop something new and after undertaking affirmative
feedback from customers he become competent to pull them to grow.
TASK 4
P7:
Entrepreneurs are usually maintaining its enterprises in order to gain benefits by rendering
their commodities or services to its customers. In addition to this, its experiences and
10

backgrounds encourage them in gaining more profitability as well as incorporated along with its
task which manages their ventures towards attainment (Zacca, Dayan and Ahrens, 2019).
Therefore, experiences as well as background of Tom Mercer are explained underneath:
Background: Tom Mercer was accomplished his graduation from Cambridge University.
In addition to this, he has experiences as management consultant into Bain & CO. which is
developed within London. Additionally, while conducting with several entities, he commonly
considers new ventures thoughts through that he can begin his new enterprises. At the time of
working consistently, he view those individuals might have few alternatives for their lunch and
breakfast though choices for their morning meal are restricted. Along with this, he also gains the
thought of initiating his new ventures as well as initiates their business into year 2006 by
incorporation effective drinks which include oats as well as smoothies. Generally, his business
enhanced those were utilising additional 25 individuals till year 2009.
Experiences: He was gained the experiences to perform as city labourer that highlights
battles of person in gaining efficacious breakfast while performing such forms of work. In
additionto this, he continuously performs late night and considers new thoughts in order to gain
effectual results of their ventures. Additionally, in underlying periods, he cuts some items like
fruits through itself at evening time and places it in mugs as well as renders that to consumers.
Along with this, he also sold its commodities at railroad station; bus and so on for deciding pre-
requites as well as influences clients for facilitating products effectually, and efficiently.
So, TOM Mercer experience and background foster him to become a successful
entrepreneurs as during his work he observe that as the person are working and do able to obtain
effective breakfast. so, this motivates him to think about the alternatives for their breakfast and
lunch (Ratten and Usmanij, 2021). Because of their management centre, this attained ideal
outcomes for accomplishment of their goals into market areas.
Elizabeth Gooch
Elizabeth Gooch is known to be the seventh most successful female entrepreneur
within United Kingdom in year 2006. So, there background and experience are discussed
below which foster them to become successful:Background and Experiences:
Elizabeth is called the founder as well as CEO of EG solutions which is a small firm that
sells operation management solution. Moreover, it initiated its work for HSBC Bank at age of 18
11

and after 8 years she initiated her own business and at aged 26 was financed through £1,000
which borrowed from friends and family as well as a credit card. In addition to this, in year 1993
Elizabeth met Rodney Bakers bates the CEO of Prudential Financial services as well as things
modified in dramatic manner. Thereafter in year 2005, the entity changed their named to EG
solutions PLC that was involved as strategic planning consultant that aids to develop business in
efficient manner. In addition to this, she decided to float the entity upon Alternative investment
market instead of approaching venture capitalists in order to retain control of business. Along
with this, the float was successful but EG solution suffered £700,000 in 2007 as well as bears
losses £800,000 within year 2007. Afterwards, in next year 2008 she cut costs by £1.2 million
and gain profitability as well as overseas for business opportunities for gaining growth.
Therefore, various experience and the faces losses foster her to become successful
entrepreneur and in management today she is known to be the most successful female
entrepreneur into UK
CONCLUSION
As per the above report, it has been concluded that entrepreneurship plays essential role
within economical growth for expanding global marketplace. Moreover, there are several forms
of entrepreneurial ventures like small, large and so on. In addition to this, there are few
typologies growth, lifestyles etc. Social economy is formed through rich diversity of various
entities and business like association and others who share common characteristics and values.
Moreover, it is essentially developed to facilitate advantages to society effectively. Additionally,
the small and start up business assists the societal economic growth of country that develops
various affirmative opportunities at marketplace. Apart fm this , Entrepreneurial motivation and
Entrepreneurial mind set are significant for entrepreneurial ventures as it assists into
improvement of confidence as well as mean that one is more apt to grab opportunities and not
being afraid to take any kind of risk.
12

2. REFERENCES
Books & Journals
Alsafadi, Y. and et. al., 2020. The mediating impact of entrepreneurs among administrative
entrepreneurship, imitative entrepreneurship and acquisitive entrepreneurship on
creativity.
Management Science Letters,
10(15), pp.3571-3576.
Doern, R., Williams, N. and Vorley, T., 2019. Special issue on entrepreneurship and crises:
business as usual? An introduction and review of the literature.
Entrepreneurship &
Regional Development,
31(5-6), pp.400-412.
Hechavarria, D. and et. al., 2019. High‐growth women’s entrepreneurship: Fueling social and
economic development.
Ismatullayevich, S.I. and Bulturbayevich, M.B., 2021. DEVELOPMENT OF SMALL
BUSINESS AND PRIVATE ENTREPRENEURSHIP IN THE ECONOMY OF THE
REPUBLIC OF UZBEKISTAN.
Academicia Globe: Inderscience Research,
2(6),
pp.419-425.
Kunaka, C. and Moos, M.N., 2019. Evaluating mentoring outcomes from the perspective of
entrepreneurs and small business owners.
The Southern African Journal of
Entrepreneurship and Small Business Management,
11(1), pp.1-11.
Leonidou, E., and et. al., 2020. An integrative framework of stakeholder engagement for
innovation management and entrepreneurship development.
Journal of Business
Research,
119, pp.245-258.
Malgas, M. and Zondi, W.B., 2020. Challenges facing small business retailers in selected South
African townships.
The Southern African Journal of Entrepreneurship and Small
Business Management,
12(1).
Maphula, P. and Diraditsile, K., 2019. THE NEED FOR EVIDENCE BASED
ENTREPRENEURSHIP AND SMALL BUSINESS POLICIES: BOTSWANA
PERSPECTIVE. In
THE 5 th INTERNATIONAL CONFERENCE ON BUSINESS
INNOVATION AND GROWTH (2019) PROCEEDINGS & BOOK OF
ABSTRACTS (p. 177).
McKenzie, D., 2021. Small business training to improve management practices in developing
countries: re-assessing the evidence for ‘training doesn’t work’.
Oxford Review of
Economic Policy,
37(2), pp.276-301.
Obschonka, M. and Audretsch, D.B., 2020. Artificial intelligence and big data in
entrepreneurship: a new era has begun.
Small Business Economics,
55(3), pp.529-539.
Parente, R., and et. al., 2021. Humane entrepreneurship: Some steps in the development of a
measurement scale.
Journal of Small Business Management,
59(3), pp.509-533.
Radović-Marković, M. and Tomaš, R., 2019.
Globalization and entrepreneurship in small
countries. Routledge.
Ratten, V. and Usmanij, P., 2021. Entrepreneurship education: Time for a change in research
direction?.
The International Journal of Management Education,
19(1), p.100367.
Rustamov, D.J., 2019. THE ROLE OF INVESTMENT IN SMALL BUSINESS AND PRIVATE
ENTREPRENEURSHIP.
Столица Науки,
29.
Sahut, J.M., Iandoli, L. and Teulon, F., 2021. The age of digital entrepreneurship.
Small
Business Economics,
56(3), pp.1159-1169.
13

OnlineThe Role of Start-ups and Small Businesses in Today’s Economy. 2018. [Online]. Available
through:<https://www.market-inspector.co.uk/blog/2017/05/facts-about-small-medium-businesses-in-the-
uk>.UK Small Business Statistics. 2021. [Online]. Available through:< https://www.fsb.org.uk/uk-small-
business-statistics.html>
14